A stock currently selling for $105 with estimated earnings per share of $5.25 would have a P/E ratio of
P/E ratio is equal to=Stock price/EPS
which is equal to
=(105/5.25)
which is equal to
=20
A stock currently selling for $105 with estimated earnings per share of $5.25 would have a...
The stock of Nogro Corporation is currently selling for $20 per share. Earnings per share in the coming year are expected to be $3. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 15% rate of return per year. This situation is expected to continue indefinitely. a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
19) Home Depot stock is currently selling for $75 per share. Next year's dividend is expected to be $1.56; next year's earnings per share are expected to be $4.16. Home Depot's P/E ratio is A) 48. C) 2.14. D).055. B) 18.
The stock of Nogro Corporation is currently selling for $13 per share. Earnings per share in the coming year are expected to be $2.30. The company has a policy of paying out 25% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 17% rate of return per year. This situation is expected to continue indefinitely. a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
The stock of Nogro Corporation is currently selling for $23 per share. Earnings per share in the coming year are expected to be $3.30. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 21% rate of return per year. This situation is expected to continue indefinitely a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
The stock of North American Dandruff Company is currently selling at $80 per share. The firm pays a dividend of $2.50 per share. a. What is the dividend yield? b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio? Solution Problem 18-10 Instructions Enter formulas to calculate the requirements of this problem. Information Stock price$80 Dividend$2.50 a. What is the annual dividend yield?FORMULA in EXCEL b. If the firm has a payout rate...
A stock is currently selling for $45. Its earnings per share during the last twelve months was $3.2. Analysts' average estimate for the company's earnings over the next year is $5.6 per share. Analysts also forecast earnings to grow at a 12% annual rate over the next 5 years. What is this stock's PEG? Round to one decimal place.
Last year, Big W Company reported earnings per share of $2.20 when its stock was selling for $55.00. If its earnings this year increase by 10 percent and the P/E ratio remains constant, what will be the price of its stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A firm with earnings per share of $8 and a price-earnings ratio of 10 will have a stock price of O $80.00 O $18.00 O $6.00 the market assigns a stock price independent of EPS and the P/E ratio.
You are currently thinking about investing in a stock valued at $25.00 per share. The stock recently paid a dividend of $2.25 and its dividend is expected to grow at a rate of 5 percent for the foreseeable future. You normally require a return of 14 percent on stocks of similar risk. What is the stock worth? Is the stock overpriced, underpriced, or correctly priced? $25, it is underpriced $26.25 it is overpriced $26.25 it is underpriced $25 it is...
You are consider buying GM stock. Their earnings per share last year were $4.75 and their P/E ratio is currently 7. You believe that Ford is a good comparable for GM. Fords earning per share were 2.20 and their P/E ratio is currently 12. Using Ford as a comparable how much is GM worth? (round to 2 decimal places) Group of answer choices $26.40 $15.40 $57 $33.25